Connecticut 2024 2024 Regular Session

Connecticut House Bill HB05470 Comm Sub / Bill

Filed 04/09/2024

                     
 
LCO   	1 of 9 
  
General Assembly  Substitute Bill No. 5470  
February Session, 2024 
 
 
 
 
AN ACT CONCERNING TRANSPORTATION NETWORK COMPANIES 
AND THIRD-PARTY DELIVERY COMPANIES .  
Be it enacted by the Senate and House of Representatives in General 
Assembly convened: 
 
Section 1. Subsection (b) of section 13b-118 of the general statutes is 1 
repealed and the following is substituted in lieu thereof (Effective July 1, 2 
2024): 3 
(b) (1) A transportation network company may charge a fare to a 4 
transportation network company rider for a prearranged ride provided 5 
the company discloses such fare to the rider through its digital network: 6 
(A) The fare or fare calculation method; (B) the applicable rates being 7 
charged; and (C) an option to receive an estimated fare before a 8 
prearranged ride. 9 
(2) [Within a reasonable period of time] Not later than five minutes 10 
following the completion of a prearranged ride, a transportation 11 
network company shall transmit, through its digital network, an initial 12 
electronic receipt to the transportation network company rider on behalf 13 
of the transportation network company driver that [lists] includes: (A) 14 
The date and time of the prearranged ride; (B) the origin and destination 15 
of the prearranged ride; [(B)] (C) the total time and distance of the 16 
prearranged ride; [and (C)] (D) the first name of the transportation 17 
network company driver; (E) an itemization of the total fare paid, if any; 18 
and (F) the compensation paid to such driver for the prearranged ride, 19  Substitute Bill No. 5470 
 
 
LCO     	2 of 9 
 
including all relevant factors used by the transportation network 20 
company to calculate such compensation. Not later than twenty-four 21 
hours following the completion of a prearranged ride, a transportation 22 
network company shall transmit to such rider a finalized electronic 23 
receipt that includes the information specified in subparagraphs (A) to 24 
(F), inclusive, of this subdivision. 25 
(3) No transportation network company driver shall solicit or accept 26 
cash payments for fares from transportation network company riders. 27 
Any payment for a prearranged ride shall be made only through the 28 
transportation network company's digital network. 29 
(4) (A) For the purposes of this subdivision, "dynamic pricing" means 30 
offering a prearranged ride at a price that changes according to the 31 
demand for prearranged rides and availability of transportation 32 
network company drivers. 33 
(B) If a transportation network company elects to implement 34 
dynamic pricing, the transportation network company, through its 35 
digital network, shall: (i) Provide notice to a potential transportation 36 
network company rider that dynamic pricing is in effect before a request 37 
for a prearranged ride may be submitted; (ii) provide a fare estimator 38 
that enables the potential rider to estimate the cost of such prearranged 39 
ride under dynamic pricing; and (iii) include a feature that requires the 40 
potential rider to confirm that he or she understands that dynamic 41 
pricing will be applied to the cost of such prearranged ride. 42 
(C) No transportation network company shall increase the price of a 43 
prearranged ride to more than two and one-half times the usual price 44 
charged for such prearranged ride in an area which is the subject of any 45 
disaster emergency declaration issued by the Governor pursuant to 46 
chapter 517, any transportation emergency declaration issued by the 47 
Governor pursuant to section 3-6b or any major disaster or emergency 48 
declaration issued by the President of the United States. 49 
Sec. 2. (NEW) (Effective July 1, 2024) (a) Not later than five minutes 50 
following the completion of a prearranged ride, a transportation 51  Substitute Bill No. 5470 
 
 
LCO     	3 of 9 
 
network company shall transmit, through its digital network, an initial 52 
electronic receipt to the transportation network company driver that 53 
includes, but need not be limited to: (1) The total time and distance of 54 
the prearranged ride, (2) the total distance driven by the driver 55 
beginning when the driver accepted the request from the rider through 56 
the digital network and ending when the rider entered the 57 
transportation network company vehicle, (3) the total fare charged to 58 
the rider, (4) the driver's rate of pay, including, but not limited to, the 59 
rate per minute, rate per mile, percentage of rider's fare received by the 60 
driver and any dynamic pricing, as defined in subdivision (4) of 61 
subsection (b) of section 13b-118 of the general statutes, as amended by 62 
this act, that was applied to the cost of the prearranged ride, (5) any tips 63 
or gratuities paid to the driver, (6) the gross payment to the driver, (7) 64 
the net payment to the driver after the deduction of any fees, tolls, 65 
surcharges, lease fees or other charges, and (8) an itemization of any 66 
such deductions. Not later than twenty-four hours following the 67 
completion of a prearranged ride, a transportation network company 68 
shall transmit to such driver a finalized electronic receipt that includes 69 
the information specified in subdivisions (1) to (8), inclusive, of this 70 
subsection. 71 
(b) A transportation network company shall maintain a digital copy 72 
of each initial and finalized electronic receipt transmitted pursuant to 73 
subsection (a) of this section on its digital network and make such 74 
receipts available for downloading by the transportation network 75 
company driver for a period of not less than three years from the date 76 
of the prearranged ride. 77 
(c) A transportation network company shall provide, through its 78 
digital network, a weekly summary to the transportation network 79 
company driver regarding the prearranged rides completed by such 80 
driver during the previous week. Such summary shall include, but need 81 
not be limited to: (1) The total time and distance of the prearranged rides 82 
completed by the driver during such week, (2) the total amount of fares 83 
charged to transportation network company riders during such week as 84 
a result of such prearranged rides, (3) the total amount of tips or 85  Substitute Bill No. 5470 
 
 
LCO     	4 of 9 
 
gratuities paid to the diver during such week, (4) the driver's gross 86 
payment received during such week, itemized by (A) rate per minute, 87 
including the average rate across all completed prearranged rides, (B) 88 
rate per mile, including the average rate across all completed 89 
prearranged rides, and (C) any other method used to calculate pay, 90 
including, but not limited to, base pay, percentage of the rider's fare or 91 
any dynamic pricing that was applied to the cost of the prearranged 92 
ride, (5) the driver's net payment during such week after the deduction 93 
of any fees, tolls, surcharges, lease fees or other charges, and (6) an 94 
itemization of any such deductions.  95 
Sec. 3. Section 13b-116 of the general statutes is repealed and the 96 
following is substituted in lieu thereof (Effective July 1, 2024): 97 
As used in this section, [and] sections 13b-117 to 13b-120, inclusive, 98 
and section 2 of this act: 99 
(1) "Transportation network company" means a company, 100 
corporation, partnership, trust, association, sole proprietorship or 101 
similar organization that operates in this state and uses a digital network 102 
to connect transportation network company riders to transportation 103 
network company drivers to provide prearranged rides. 104 
"Transportation network company" does not include the holder of a 105 
certificate of public convenience and necessity issued under the 106 
provisions of section 13b-97 to operate a taxicab or the holder of a permit 107 
issued under the provision of section 13b-103 to operate a motor vehicle 108 
in livery service. 109 
(2) "Transportation network company driver" or "driver" means an 110 
individual who [is not an employee of a transportation network 111 
company, but who] uses a transportation network company vehicle to 112 
provide prearranged rides. 113 
(3) "Transportation network company rider" or "rider" means an 114 
individual or individuals who use a digital network to connect with a 115 
transportation network company driver to receive a prearranged ride 116 
between points chosen by the individual or individuals. 117  Substitute Bill No. 5470 
 
 
LCO     	5 of 9 
 
(4) "Potential transportation network company rider" or "potential 118 
rider" means an individual or individuals who use a digital network to 119 
request a prearranged ride but have not entered the transportation 120 
network company vehicle. 121 
(5) "Digital network" means any online-enabled application, web site 122 
or system offered or utilized by a transportation network company that 123 
enables the provision of prearranged rides. 124 
(6) "Prearranged ride" means transport by a transportation network 125 
company driver of a transportation network company rider, (A) 126 
beginning when the driver accepts a request from the rider through a 127 
digital network, (B) continuing while the driver transports the rider, and 128 
(C) ending when the last rider exits the transportation network 129 
company vehicle. 130 
(7) "Transportation network company vehicle" means a motor vehicle 131 
as described in subsection (h) of section 13b-119 that is owned, leased or 132 
otherwise used by a transportation network company driver when the 133 
driver is connected to a digital network or is engaged in the provision 134 
of a prearranged ride. 135 
Sec. 4. (NEW) (Effective July 1, 2024) (a) As used in this section: 136 
(1) "Third-party delivery company" means a company, corporation, 137 
partnership, trust, association, sole proprietorship or similar 138 
organization that operates in this state and uses a digital network to 139 
connect customers to third-party delivery company drivers to provide 140 
prearranged deliveries.  141 
(2) "Third-party delivery company driver" or "driver" means an 142 
individual who uses the digital network of a third-party delivery 143 
company to provide prearranged deliveries.  144 
(3) "Prearranged delivery" means the delivery by a third-party 145 
delivery company driver of groceries, food, beverages, commercial 146 
goods or other items prepared by another entity, or food and beverages 147  Substitute Bill No. 5470 
 
 
LCO     	6 of 9 
 
from not fewer than ten separately owned and operated food service 148 
establishments, (A) beginning when the driver accepts a request from 149 
the customer through a digital network, (B) continuing while the driver 150 
transports the groceries, food, beverages, commercial goods or other 151 
items, and (C) ending when the driver delivers the groceries, food, 152 
beverages, commercial goods or other items to the location requested by 153 
the customer.  154 
(4) "Food service establishment" has the same meaning as provided 155 
in section 21a-62b of the general statutes.  156 
(5) "Digital network" means any online-enabled application, web site 157 
or system offered or utilized by a third-party delivery company that 158 
enables the provision of prearranged deliveries. 159 
(6) "Dynamic pricing" means offering a prearranged delivery at a 160 
price that changes according to the demand for prearranged deliveries 161 
and availability of third-party delivery company drivers. 162 
(b) Not later than five minutes following the completion of a 163 
prearranged delivery, a third-party delivery company shall transmit, 164 
through its digital network, an initial electronic receipt to the customer 165 
on behalf of the third-party delivery company driver that includes an 166 
estimation of: (1) The date and time of the prearranged delivery, (2) the 167 
origin and destination of the prearranged delivery, (3) the total time and 168 
distance of the prearranged delivery, (4) the first name of the third-party 169 
delivery company driver, (5) an itemization of the total cost of such 170 
prearranged delivery, and (6) the compensation paid to such driver for 171 
the prearranged delivery, including all relevant factors used by the 172 
third-party delivery company to calculate such compensation. Not later 173 
than twenty-four hours following the completion of a prearranged 174 
delivery, a third-party delivery company shall transmit to such 175 
customer a finalized electronic receipt that includes the information 176 
specified in subdivisions (1) to (6), inclusive, of this subsection. 177 
(c) Not later than five minutes following the completion of a 178 
prearranged delivery, a third-party delivery company shall transmit, 179  Substitute Bill No. 5470 
 
 
LCO     	7 of 9 
 
through its digital network, an initial electronic receipt to the third-party 180 
delivery company driver that includes, but need not be limited to: (1) 181 
The total time and distance of the prearranged delivery, (2) the total 182 
distance driven by the driver beginning when the driver accepted the 183 
request from the customer through the digital network and ending 184 
when the driver picked up the groceries, food, beverages, commercial 185 
goods or other items to be delivered, (3) the total cost of such 186 
prearranged delivery charged to the customer, (4) the driver's rate of 187 
pay, including, but not limited to, the rate per minute, rate per mile, 188 
percentage of the cost of the prearranged delivery received by the driver 189 
and any dynamic pricing that was applied to the cost of the prearranged 190 
delivery, (5) any tips or gratuities paid to the driver, (6) the gross 191 
payment to the driver, (7) the net payment to the driver after the 192 
deduction of any fees, tolls, surcharges, lease fees or other charges, and 193 
(8) an itemization of any such deductions. Not later than twenty-four 194 
hours following the completion of a prearranged delivery, a third-party 195 
delivery company shall transmit a finalized electronic receipt to such 196 
driver with the information specified in subdivisions (1) to (8), inclusive, 197 
of this subsection. 198 
(d) A third-party delivery company shall maintain a digital copy of 199 
each initial and finalized electronic receipt transmitted pursuant to 200 
subsection (c) of this section on its digital network and make such 201 
receipts available for downloading by the third-party delivery company 202 
driver for a period of not less than three years from the date of the 203 
prearranged delivery. 204 
(e) A third-party delivery company shall provide, through its digital 205 
network, a weekly summary to the third-party delivery company driver 206 
regarding the prearranged deliveries completed by such driver during 207 
the previous week. Such summary shall include, but need not be limited 208 
to: (1) The total time and distance of the prearranged deliveries 209 
completed by the driver during such week, (2) the total amount of fares 210 
charged to customers during such week as a result of such prearranged 211 
deliveries, (3) the total amount of tips or gratuities paid to the driver 212 
during such week, (4) the driver's gross payment received during such 213  Substitute Bill No. 5470 
 
 
LCO     	8 of 9 
 
week, itemized by (A) rate per minute, including the average rate across 214 
all completed prearranged deliveries, (B) rate per mile, including the 215 
average rate across all completed prearranged deliveries, and (C) any 216 
other method used to calculate pay, including, but not limited to, base 217 
pay, the percentage of the cost of the prearranged delivery received by 218 
the driver or any dynamic pricing that was applied to the cost of the 219 
prearranged delivery, (5) the driver's net payment during such week 220 
after the deduction of any fees, tolls, surcharges, lease fees or other 221 
charges, and (6) an itemization of any such deductions.  222 
Sec. 5. (Effective from passage) (a) For the purposes of this section, 223 
"transportation network company driver" and "prearranged ride" have 224 
the same meanings as provided in section 13b-116 of the general 225 
statutes, as amended by this act.  226 
(b) The Commissioner of Transportation shall negotiate and enter 227 
into a memorandum of understanding with the proper authorities of the 228 
states of New York, Massachusetts, Rhode Island and New Jersey to 229 
establish a regional approach to permitting a transportation network 230 
company driver who possesses a motor vehicle operator's license in one 231 
state to provide a prearranged ride that originates in a different state. 232 
Not later than January 1, 2025, the commissioner shall report, in 233 
accordance with the provisions of section 11-4a of the general statutes, 234 
to the joint standing committee of the General Assembly having 235 
cognizance of matters relating to transportation on the results of such 236 
negotiations and any legislation needed to implement such regional 237 
approach.  238 
This act shall take effect as follows and shall amend the following 
sections: 
 
Section 1 July 1, 2024 13b-118(b) 
Sec. 2 July 1, 2024 New section 
Sec. 3 July 1, 2024 13b-116 
Sec. 4 July 1, 2024 New section 
Sec. 5 from passage New section 
  Substitute Bill No. 5470 
 
 
LCO     	9 of 9 
 
Statement of Legislative Commissioners:   
In Sections 2(b) and 4(d) "not less than" was added before "three years" 
for conformity with standard drafting conventions.  
 
LAB Joint Favorable Subst.